Todd Mardis: The Cares Act, in general, has really been a phenomenal thing to watch. The amount of money that they’ve allocated to Cares Act, both in the time that they did it which was fairly impressive, as well as the amount that they are allocating is mind-boggling. You know, these are numbers that one in history could have ever imagined or phantom would be provided. So, the question becomes, we’ve helped as many people as we can, we’ve added a $600 a week bonus to unemployment cheques, which is fantastic, many people need. But they come with a price tag right? Somebody has got to pay that back right?
And we may be looking at 20/25% of our US population on unemployment at some point, in the very near future. So, the question then becomes “how do we pay it back?” And I think it is really common knowledge to say “the only way the Federal Government gains money in which they will need to pay this, Cares Act is to taxation.” Now whether that comes in the form of high marginal rates or higher corporate effective tax rates and or especially allocated tax. You know we have the Medicare Tax now, we have the Medicare Payroll Tax, specifically allocated to propel (popup) Medicare. The same thing could be said of the Covid-19, it is very easy to foresee a Cares Act Tax, or Covid-19, or Pandemic 2020 Tax.
They would be a flat tax on us for a significant period of time to recover the 5, 7 Trillion dollars that we are going to ultimately spend, you know, in providing relief for individuals who have lost their incomes.
So, most of our clients aren’t looking to go buy a Ferrari, they are driving the vehicles they want to drive, they are not looking to build a bigger house, they just want to be more efficient. And they are saying “hey, I want to be paying the amount of taxes I legally have to pay and not a cent more.”
And then, what they do with that money is up to them, but most of them feel like they can contribute to society in a better way with those dollars than what the federal government is doing with them.